Status of HumanVenture transparent donation system on Everscale
Following integration of our transparent donations system with Everscale in April 2021, we continue working on scaling of our solution.
● The number of recipients receiving aid through the system reached around 2500.
● 18 regions in Russia covered
● 3rd largest Russian charity Rus is the partner charity
● several international corporates participated as donors
In 2021 we were working with our existing and potential partners to scale the system throughout Russia via massive attraction of private and corporate donors and spreading it to all regions of the country, to substantially increase the number of people getting help.
In Q1’2022 we started facing multiple challenges:
- The environment has become more challenging for private charity initiatives, with aid to needy people to be more likely controlled by the Russian state
- While overall adverse economic developments and forecasts are increasing the demand for aid, at the same time they have substantial adverse effect on the appetite of donors to allocate charitable donations
- Fundraising of investments for further scaling in Russia has become extremely challenging if possible at all
- Moreover, ongoing discussions on regulation of crypto- and blockchain market in Russia between the Central Bank and the Ministry of Finance bring even more uncertainty
Currently we are adjusting our strategy in Russia in coordination with our partners.
In 2021 we have been working on pilot implementation of the system in the UK.
In August 2021 we were awarded an Innovate UK Smart Grant for the UK market entry with the transparent donation platform. Under the grant project we completed the market feasibility study, communicated with 10+ charities and got expression of interest from several of them, and obtained a legal advice on how the system could be legally implemented in the UK.
In 2021 the UK legislation with regards to cryptocurrencies and blockchain projects was substantially changed - in particular, due to introduction by the Financial Conduct Authority and HM Treasury of Anti-Money Laundering registration requirements of all legal entities involved in blockchain-related business. Therefore we had certain delays in pilot implementation as we had to spend more time, efforts and resources to revisit legal aspects of our activities in the UK.
Currently we are in discussions with grocery chains to start pilot implementation of the project.
In parallel we are adjusting our UK roadmap to the challenges of the political situation.
Poverty has been one of the key problems in Africa and unfortunately it is becoming more and more acute. E.g. in 2021 the number of people in Africa living below the poverty line (USD 1.9 /day) reached 490 million, which is approximately 37 million people more that it would be without the effect of CoVid. And the situation might become even more difficult in particular due to the potential food crisis because of the military conflict in Ukraine.
Besides, other major challenges are access to quality education and healthcare.
Therefore Africa is a market with high potential for our transparent donation solution.
We have come to an agreement on implementation of the system in Zambia with a local charity and one of the grocery & staples stores. The pilot implementation will envisage collection, management and spending of donations for schoolchildren to pay for their lessons, school meals, foodstuffs and some goods for daily needs. Currently Olga Diachenko, CEO of HumanVenture Ltd., UK, is on a trip to Zambia for all the remaining integration arrangements and implementation.
The project in Zambia should become a basis for further expansion in Africa.
We are in discussions on possible implementation of our solution in several other African countries, such as Egypt, SAR, Benin after completion of the pilot.
4. Other countries
We are also discussing potential implementation of the system in some countries in the CIS, Europe and the Middle East. We will post further details as soon as we can.
5. Other impact cases
We are also discussing other blockchain products for sustainability and will inform the community in due course.
Out of the total 280,000 tokens received, approximately 200,000 have been spent.